8/9/2019 2010 1Q Houston Office Market Report
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COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
HOUSTON | 1ST QUARTER | 2010
Our Knowledge is your Pro
8/9/2019 2010 1Q Houston Office Market Report
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COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 3RD QUARTER UPDATE 2009
Houston Office Market Posts Signs of Stabilizing
Houstons office market closed the first quarter 2010 with encouraging signs it is nearing the end oMARKET INDICATORS
COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
1Q-09 1Q-10
AR-TO-DATE NET ABSORPTION
(672,346) SF 408,209 SF
CITYWIDE AVERAGE VACANCY
ALL CLASSES
the downward shift that began in late 2008, with current trends suggesting the suburban market
may recover before the CBD. Positive net absorption, not expected until the end of this year, came
early with 408,209 SF of first quarter gains in occupied space citywide. Boosting the overall net
gains was Suburban Class A positive net absorption of 335,037 SF. This contrasted sharply with
CBD Class A the only property class citywide to post losses in occupied space with negative net
absorption of 200,377 SF. Likewise, the rate of decrease for major indicators, including occupancy
and rental rates, slowed significantly for Suburban property classes on a year-over-year basis in the
14.4% 16.2%
CITYWIDE AVERAGE
GROSS QUOTED RENTAL RATE
ALL CLASSES
$23.68/SF $23.46/SF
CLASS A
irst quarter.
Houstons CBD office market has shown strong resiliency throughout the current economic
slowdown, with CBD Class A properties maintaining occupancy above the 90% mark consistently
over the past 12 consecutive quarters. Year-over-year occupancy for all CBD property classes
remained stable with Class A dipping slightly to 91.2% from 91.5% in the first quarter. Weak
tenant demand for the available space on the market, however, continued to weigh on landlords
D $38.87/SF $35.57/SF
BURBAN $28.10/SF $27.88/SF
CLASS A VACANCY
D 8.5% 8.8%
BURBAN 14.5% 19.1%
o s gn cant y re uce quote renta rates y . an . or ass an ass
buildings , respectively, compared to only a 0.8% and 1.0% decrease for Suburban Class A and B
buildings. Even though CBD occupancy levels were significantly stronger than the combined
Suburban market, the CBD closed the first quarter conceding significant rental rate cuts in order to
hold ground, while the Suburban market avoided sharp rate drops due, in part, to a significantlyslower rate of decrease in occupancy.
OB GROWTH & UNEMPLOYMENT
vera , ous on s o ce mar e an economy rema n among e s ronges n e . . n arc
2010, Forbes ranked Houston fourth among U.S. major metros where the recession is easing, due
primarily to a solid diversified base of growth industries. High oil prices are benefiting from global
markets in recovery, and although decidedly low compared to previous expansion periods, Houston
is expected to end the year with positive job growth. With commercial real estate a lagging
indicator, however, the local office market recovery is not expected before 2011.
FEB. 09 FEB. 10
USTON -3.1% job growth
80,000 jobs lost
9%
11%
13%
15%
17%
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
,
EMPLOYMENT 6.7% 8.5%
XAS-2.3% job growth
241,300 jobs lost
EMPLOYMENT 7.0% 8.3%
5%
7%
-1,000,000
-500,000
Absorption New Supply Vacancy
Q1-08 Q2-08 Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10
- . o growt
3.2M jobs lost
EMPLOYMENT 8.9% 10.4%
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COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
Occupancy & Availability
Houstons office occupancy continued
Absorption & Demand
Houston recorded positive net absorptio2010 TOP OFFICE LEASES
average for all property classes at 83.8% in
the first quarter, compared to 85.6% at this
time last year. It is important to note,
however, that the rate of decrease slowedcitywide, particularly for Suburban office
property classes. Although Suburban
, ,
compared to 672,346 SF negative net
absorption at this time last year. Suburb
Class A product contributed the most to
the citywide gains with 335,037 SF ofpositive net absorption. In contrast, CB
Class A properties the only property cl
Kellogg Brown & Root*
KBR Tower, CBD
Feb-10 883,487 SF
Kellogg Brown & Root**Cullen Center, CBD
Feb-10 291,536 SF
,
large gap in the rate of decrease between
the two sectors narrowed considerably in
the first quarter.
In the CBD, Class A office occupancy
dipped slightly to 91.2% from 91.5% 12
months earlier. The downtown markets
reported negative net absorption of
200,377 SF.
Although net absorption gains from
tenants with less than 25,000 SF
dominated in the first quarter, larger mo
ins included: Tax Masters 107,890 SF at
CyrusOne
5150 Westway Park Blvd, Northwest
Mar-10 92,420 SF
Wyle Laboratories*
Aerotech Business Ctr, NASA-Clear Lake
Mar-10 51,803 SF
ability to maintain occupancy above 90%
by retaining top tenants with significant
blocks of space most recently Kellogg
Brown & Root (see lease section) speaks
to the resiliency of top-tier office landlords
during the ongoing economic slowdown.
Suburban Class A occupancy fell to 80.9%
Dairy Ashford Plaza; Quorum Business
Solutions expansion of 27,084 SF (for a
total of 63,084 SF occupied) at Pinnacle
Westchase; and Willis of Texas 45,766
at Cemex Center.
Tenant UndisclosedBank of America Center, CBD
Mar-10 30,188 SF
Tenant Undisclosed
Enclave Parkway, Energy Corridor
Mar-10 29,976 SF
at the end of the first quarter from 85.5%
one year ago. In contrast, Suburban Class B
occupancy increased slightly to 83.6% from
83.5% during the same period.
Citywide, a total of 59 office properties had
over 100,000 SF available for lease in
While rental rates for all property classes
continued to decrease from one year ago
the rate of decrease for Suburban
properties was significantly slower,compared to CBD properties, in the firs
quarter. Citywide, office landlords
WEUS Holdings*
Marathon Oil Tower, Galleria/West Loop
Feb-10 26,407 SF
Tenant UndisclosedEnergy Tower I, Energy Corridor
Mar-10 23,608 SF
of the first quarter. Sublease space on the
market held steady from the previous
quarter with a total of 4.7 million SF,
including 2.3 million SF of vacant space
and an additional 2.4 million SF of
subleases available for occupancy over theCBD VS. SUBURBANCLASS A OFFICE VACANCY & RENTS
cont nue to ncrease ease concess ons,
including free rent and generous tenant
improvement packages, by way of attract
and retaining credit-strong tenants.
On a year-over-year basis, CBD Class A
average quoted rental rates fell 8.5% to
$35.57/SF (from $38.87), while suburba
*Renewal of 695,800 SF and Expansion of
187,687 SF for a total of 883,487 SF
**Renewal
.
being marketed is located downtown in theRRI Energy Plaza building (1000 Main,
CBD) where 432,862 SF is available for
occupancy in October 2010 (through
October 2018). Outside the CBD, major
sublease assignments include the 119,718
SF throu h December 2013 available at$27
$30
$32
$35
$37
$40
Class A rental rates decreased 0.8% to
$27.88/SF (from $28.10).
CBD Class B average quoted rental rates
plunged 11.5% to $23.76 per SF (from
$26.85), while suburban Class B rates
slipped 1.0% to $15.82 per SF (from
16.6 on a full-service basis. Althou h
9700 Bissonnet (Southwest); and 36,309 SF
(through February 2012) at The Braeswood
Tower II (Galleria/West Loop).
$221Q-09 2Q-09 3Q-09 4Q-09 1Q-10
CBD VACANCYSUBURB AN VACANCYCBD RENTS
. .
continued downward pressure on rental
rates is likely, current trends suggest
Suburban office rental rates may hit
bottom well before CBD properties.
8/9/2019 2010 1Q Houston Office Market Report
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COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
Top Performing Office Buildings
ells Fargo Pl
1000 Louisian
CBD
RBA: 1,72
Built: 1983
Leased: 84.9
Available: 260
Bank of America Ctr.
700 Louisiana
CBD
RBA: 1,268,480 SF
Built: 1983
Leased: 88.1%
Available: 140,830 SF
Five Houston Center
1401 McKinney Street
CBD
RBA: 580,875 SF
Built: 2002
Leased: 91.0%
Available: 56,362 SF
Rents: $42.
Owner:
Metropolitan L
Insurance Com
Rents: $37.96/SF
Owner:
The Novarti Group
Rents: $42.62/SF
Owner:
Wells REIT II
Five Post Oak
4400 Post Oak
Galleria/West
Wells Fargo Tower
1300 Post Oak Blvd.
Galleria/West Loop
Marathon Oil Tower
5555 San Felipe
Galleria/West Loop
RBA: 567
Built: 198
Leased: 90.4
Available: 53,6
Rents: $34
Owner:
RBA: 491,254 SF
Built: 1983
Leased: 93.0%
Available: 34,211 SF
Rents: $34.55/SF
Owner:
RBA: 1,070,209 SF
Built: 1982
Leased: 85.4%
Available: 156,075/SF
Rents: $27.59/SF
Owner:
Shorenstein CoTIAA-CREFHanover Real Estate
Partners
The Plaza at Enclave
1254 Enclave Parkway
Energy Corridor
RBA: 343, 541 SF
Built: 2008
One Eldridge Place
777 N. Eldridge Parkway
Energy Corridor
RBA: 239,417 SF
Built: 1985/2001
One BriarLak
2000 W. Sam
Pkwy
Westchase
RBA: 502
Leased: 82.5%
Available: 59,998 SF
Rents: $32.00/SF
Owner:
Core Real Estate
Leased: 92.1%
Available: 18,800 SF
Rents: $31.22/SF
Owner:
Behringer Harvard
Leased: 93.0
Available: 34,
Rents: $40
Owner:
Behringer Har
ices at en
1600 HighwaySugar Land/
E. Fort Bend
RBA: 85,2
Built: 199
Leased: 94.6
11 Greenway
Greenway
RBA: 745,956 SF
Built: 1979
Leased: 84.5%
Available: 115,313 SF
aterway aza
10003 WoodlochForest
Woodlands
RBA: 223,483 SF
Built: 2000
Leased: 98.4%
Available: 4,5
Rents: $25
Owner:
KBS Real Esta
Investment Tr
Rents: $30.47/SF
Owner:
Crescent RE Equities
Available: 3,557 SF
Rents: $34.00/SF
Owner:
Triple Net Properties
8/9/2019 2010 1Q Houston Office Market Report
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COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
Leasing Activity
Houstons office leasing activity reached 3.
million SF in the first uarter com ared t
Sales Activity
Investment sales activity remained weak at
-
3.1 million SF in the first quarter last year.
Three months into the year, only one tena
(Kellogg Brown & Root) committed to
leasing over 100,000-SF, although severalcredit-strong tenants are in the market for
significant blocks of space citywide.
,
recession period, with fewer quality
buildings on the market and the lack of
available credit still the primary factors
keeping transaction activity low.Transactions year-to-date through the first
quarter totaled 15 with a total dollar
olume of 257M avera in 76 er SFoper Cameron
Signi icant non-renewa o ice eases signe
through the first quarter included: Kellogg
Brown & Roots 187,687-SF lease at KBR
Tower (CBD); Cyrus Ones 92,420-SF leas
at 5150 Westway Park Boulevard
(Northwest); and Newfields 20,345-SF lea
at 363 North Belt (Greenspoint-North Bel
with a 9.0% capitalization rate.
Among the most significant transactions
closed in the first quarter were:
Brookfield Asset Management acquired a
19-property, 2.9M SF portfolio from
JPMorgan Chase for $200M ($63/SF), with
rthwest Submarket
RBA: 210,000 SF
Built: 2001
Buyer: Potamkin Auto Group
Seller: Maxxam Property Co.
le Date: February 2010
Key office lease renewals signed in 2010included Kellogg Brown & Roots renewal
for 695,800-SF and 291,536-SF at KBR
Tower and 500 Jefferson Building,
respectively (CBD); Wyle Laboratories
51,803-SF lease at Aerotech Business Cent
(NASA-Clear Lake); WEUS Holdings
office buildings across several states,including three in Houston, the largest
being 810,000-SF 712 Main.
James McSherry purchased the 745,956-SF
11 Greenway Plaza for an undisclosed
amount from Durango Portfolio. Built in
26,407-SF lease at Marathon Oil Tower
(Galleria-West Loop); Lorrance &
Thompsons 21,263-SF lease at Brookhollo
Central II (Northwest); and Bridgeway
Softwares 21,000 SF lease at 6575 WestLoop South (Bellaire).
For other si nificant office lease transactio
, .
Potamkin Auto Group purchased the
210,000-SF Cooper Cameron Building
from Maxxam Property Co. for
approximately $29.7M or $141/SF.
1110 Main Partners LP acquired the
187,000-SF Americana Building for an
mberway II
95 N. Barkers Landing Road
rgy Corridor/Katy Freeway
RBA: 130,822 SF
Built: 1983
Buyer: Beacon Investment Properties
HOUSTON OFFICE MARKET SUMMARY (CBD, SUBURBAN, & CITYWIDE)
signed year-to-date, please see the list noted
on page 3.
undisclosed amount from the American
National Insurance Company.
Seller: PS Business Parks
e Date: January 2010
Absorption Rent
Class
Total
Inventory
Sq. Ft.
Direct
Vacant
Sq. Ft.
Direct
Vacancy
Rate
Sublease
Vacant
Sq. Ft.
Sublease
Vacancy
Rate
Total
Vacant
Sq. Ft.
Q1 Vacancy
Rate
Q4 Vacancy
Rate
Q1 Net
Absorption
Sq. Ft.
YTD Net
Absorption
Sq. Ft.
Wgtd. A
Quote
Rate
CENTRAL BUSINESS DISTRICT
A 27,823,552 2,040,855 7.3% 417,377 1.5% 2,458,232 8.8% 8.1% (200,377) (200,377) $3B 8,483,563 1,676,929 19.8% 90,276 1.1% 1,767,205 20.8% 22.8% 169,251 169,251 $2
C 1,521,580 802,678 52.8% 0 0.0% 802,678 52.8% 53.4% 9,869 9,869 $1
Total 37,828,695 4,520,462 11.9% 507,653 1.3% 5,028,115 13.3% 13.2% (21,257) (21,257) $2
SUBURBAN TOTAL
A 68,534,386 12,177,457 17.8% 907,757 1.3% 13,085,214 19.1% 19.6% 335,037 335,037 $2
B 69,401,579 10,532,568 15.2% 842,120 1.2% 11,374,688 16.4% 17.4% 26,341 26,341 $1
C 19,707,647 2,241,311 11.4% 33,826 0.2% 2,275,137 11.5% 11.9% 68,088 68,088 $1
o a , , , , . , , . , , . . , ,
GRAND TOTAL
A 96,357,938 14,218,312 14.8% 1,325,134 1.4% 15,543,446 16.1% 16.3% 134,660 134,660 $2
B 77,885,142 12,209,497 15.7% 932,396 1.2% 13,141,893 16.9% 17.2% 195,592 195,592 $1
C 21,229,227 3,043,989 14.3% 33,826 0.2% 3,077,815 14.5% 14.8% 77,957 77,957 $1
Total 195,472,307 29,471,798 15.1% 2,291,356 1.2% 31,763,154 16.2% 16.5% 408,209 408,209 $2
8/9/2019 2010 1Q Houston Office Market Report
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COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
HOUSTON SUBURBAN OFFICE MARKET
Class
Total
Inventory
Sq. Ft.
Direct
Vacant
Sq. Ft.
Direct
Vacancy
Rate
Sublease
Vacant
Sq. Ft.
Sublease
Vacancy
Rate
Total
Vacant
Sq. Ft.
Q1 Vacancy
Rate
Q1 Net
Absorption
Sq. Ft.
YTD Net
Absorption
Sq. Ft.
Wgtd. Avg.
Quoted
Gross Rate
Suburban Total
A 68,534,386 12,177,457 17.8% 907,757 1.3% 13,085,214 19.1% 335,037 335,037 $27.88
B 69,401,579 10,532,568 15.2% 842,120 1.2% 11,374,688 16.4% 26,341 26,341 $18.13
C 19,707,647 2,241,311 11.4% 33,826 0.2% 2,275,137 11.5% 68,088 68,088 $15.82
Total 157,643,612 24,951,336 15.8% 1,783,703 1.1% 26,735,039 17.0% 429,466 429,466 22.68$
Baytown
, , . . , . .
C 60,396 4,787 7.9% 0 0.0% 4,787 7.9% 0 0 $14.00
Total 585,940 10,187 1.7% 0 0.0% 10,187 1.7% 0 0 16.16$
Bellaire
A 1,389,252 104,882 7.5% 20,119 1.4% 125,001 9.0% (9,867) (9,867) $24.09
B 949,061 39,476 4.2% 0 0.0% 39,476 4.2% 11,091 11,091 $17.44
C 567,560 37,367 6.6% 11,654 2.1% 49,021 8.6% (16,820) (16,820) $15.25
Total 2,905,873 181,725 6.3% 31,773 1.1% 213,498 7.3% (15,596) (15,596) 20.83$
Conroe
A 60,000 0 0.0% 0 0.0% 0 0.0% 0 0 -
B 258,239 19,469 7.5% 0 0.0% 19,469 7.5% 1,077 1,077 $16.00
C 157,335 4,275 2.7% 0 0.0% 4,275 2.7% 0 0 $15.00
Total 475,574 23,744 5.0% 0 0.0% 23,744 5.0% 1,077 1,077 15.82$
E.Fort Bend/Sugarland
A 3,540,374 634,830 17.9% 5,780 0.2% 640,610 18.1% 16,376 16,376 $28.53
B 2,074,624 291,776 14.1% 2,377 0.1% 294,153 14.2% 25,816 25,816 $19.07
C 181,612 5,136 2.8% 0 0.0% 5,136 2.8% 1,356 1,356 $17.50
Total 5,796,610 931,742 16.1% 8,157 0.1% 939,899 16.2% 43,548 43,548 25.51$
FM 1960
A 2,382,096 1,541,958 64.7% 24,375 1.0% 1,566,333 65.8% 20,863 20,863 $26.58
B 5,104,117 959,471 18.8% 52,465 1.0% 1,011,936 19.8% 1,673 1,673 $16.07
C 828,120 98,322 11.9% 2,463 0.3% 100,785 12.2% (4,278) (4,278) $14.59
Total 8,314,333 2,599,751 31.3% 79,303 1.0% 2,679,054 32.2% 18,258 18,258 22.25$
Greenwa
A 6,069,998 916,427 15.1% 145,974 2.4% 1,062,401 17.5% (7,682) (7,682) $28.11
B 2,731,339 259,420 9.5% 1,310 0.0% 260,730 9.5% (12,321) (12,321) $21.21
C 950,509 238,281 25.1% 0 0.0% 238,281 25.1% 8,774 8,774 $16.83
Total 9,751,846 1,414,128 14.5% 147,284 1.5% 1,561,412 16.0% (11,229) (11,229) 24.94$
Gulf Freeway/Pasadena
A 88,000 44,000 50.0% 0 0.0% 44,000 0.0% 0 0 $24.64
B 1,625,319 145,020 8.9% 6,611 0.4% 151,631 9.3% 8,633 8,633 $19.96C 1,098,967 111,079 10.1% 0 0.0% 111,079 10.1% 3,160 3,160 $14.68
Total 2,812,286 300,099 10.7% 6,611 0.2% 306,710 10.9% 11,793 11,793 15.08$
I-10 East
B 268,516 81,980 30.5% 9,260 3.4% 91,240 34.0% 6,494 6,494 $15.21
C 221,473 16,748 7.6% 0 0.0% 16,748 7.6% 0 0 $9.88
Total 489,989 98,728 20.1% 9,260 1.9% 107,988 22.0% 6,494 6,494 14.31$
Katy Freeway
A 11,175,054 2,447,503 21.9% 76,576 0.7% 2,524,079 22.6% 113,372 113,372 $28.32
B 6,765,390 861,399 12.7% 80,463 1.2% 941,862 13.9% 208,815 208,815 $18.60
C 1,809,915 201,048 11.1% 2,600 0.1% 203,648 11.3% 6,298 6,298 $14.85
Total 19,750,359 3,509,950 17.8% 159,639 0.8% 3,669,589 18.6% 328,485 328,485 25.16$
Kingwood/Humble
A 134,000 25,904 19.3% 0 0.0% 25,904 19.3% 0 0 $27.50
B 1,651,450 177,397 10.7% 6,810 0.4% 184,207 11.2% 16,056 16,056 $20.55
C 644,358 28,284 4.4% 0 0.0% 28,284 4.4% (1,826) (1,826) $15.83
Total 2 429 808 231 585 9.5% 6 810 0.3% 238 395 9.8% 14 230 14 230 20.75
NASA/Clear Lake
A 699,372 32,594 4.7% 9,152 1.3% 41,746 6.0% 0 0 $23.91B 3,038,159 242,421 8.0% 15,284 0.5% 257,705 8.5% 18,573 18,573 $20.81
C 1,227,256 145,663 11.9% 13,047 1.1% 158,710 12.9% (20,522) (20,522) $15.07
Total 4,964,787 420,678 8.5% 37,483 0.8% 458,161 9.2% (1,949) (1,949) 19.06$
Neartown/Allen Parkway
A 1,613,358 233,692 14.5% 120,877 7.5% 354,569 22.0% 18,731 18,731 $30.87
B 2,654,419 199,589 7.5% 33,139 1.2% 232,728 8.8% (47,542) (47,542) $22.69
C 1,191,545 413,158 34.7% 0 0.0% 413,158 34.7% 7,938 7,938 $21.19
Total 5,459,322 846,439 15.5% 154,016 2.8% 1,000,455 18.3% (20,873) (20,873) 24.22$
Greenspoint/North Belt
A 4,806,816 351,074 7.3% 70,220 1.5% 421,294 8.8% 14,627 14,627 $20.68
B 5,026,160 1,187,535 23.6% 153,735 3.1% 1,341,270 26.7% (84,052) (84,052) $16.12
C 1,347,079 191,672 14.2% 4,062 0.3% 195,734 14.5% (2,468) (2,468) $13.22
Total 11,180,055 1,730,281 15.5% 228,017 2.0% 1,958,298 17.5% (71,893) (71,893) 16.72$
8/9/2019 2010 1Q Houston Office Market Report
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COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
HOUSTON SUBURBAN OFFICE MARKET
Class
Total
Inventory
Sq. Ft.
Direct
Vacant
Sq. Ft.
Direct
Vacancy
Rate
Sublease
Vacant
Sq. Ft.
Sublease
Vacancy
Rate
Total
Vacant
Sq. Ft.
Q1 Vacancy
Rate
Q1 Net
Absorption
Sq. Ft.
YTD Net
Absorption
Sq. Ft.
Wgtd. Avg.
Quoted
Gross Rate
Northeast
B 291,773 50,291 17.2% 0 0.0% 50,291 17.2% 0 0 $17.02C 164,053 15,851 9.7% 0 0.0% 15,851 9.7% 0 0 $11.95
Total 455,826 66,142 14.5% 0 0.0% 66,142 14.5% 0 0 15.80$
Northwest
A 3,774,963 1,357,879 36.0% 1,404 0.0% 1,359,283 36.0% 67,051 67,051 $25.70
B 6,864,990 1,442,862 21.0% 33,808 0.5% 1,476,670 21.5% (53,414) (53,414) $15.30
C 1,576,840 53,888 3.4% 0 0.0% 53,888 3.4% 35,576 35,576 $12.24
Total 12,216,793 2,854,629 23.4% 35,212 0.3% 2,889,841 23.7% 49,213 49,213 20.19$
Northwest Outlier
A 89,750 0 0.0% 0 0.0% 0 0.0% 0 0 -
B 135,457 4,264 3.1% 0 0.0% 4,264 3.1% 3,308 3,308 $13.80
Total 225,207 4,264 1.9% 0 0.0% 4,264 1.9% 3,308 3,308 $13.80
Richmond/Fountainview
B 643,051 60,689 9.4% 0 0.0% 60,689 9.4% 2,213 2,213 $13.74
C 794,419 114,354 14.4% 0 0.0% 114,354 14.4% 9,448 9,448 $12.63
Total 1,437,470 175,043 12.2% 0 0.0% 175,043 12.2% 11,661 11,661 13.01$
San Felipe/Voss
, , , . , . , . , , .
B 3,389,384 310,553 9.2% 28,454 0.8% 339,007 10.0% (2,400) (2,400) $19.73C 161,393 23,501 14.6% 0 0.0% 23,501 14.6% (1,601) (1,601) $12.53
Total 5,292,005 568,464 10.7% 68,958 1.3% 637,422 12.0% (29,826) (29,826) 23.89$
South
A 105,869 100,369 94.8% 0 0.0% 100,369 94.8% 5,500 5,500 $27.11
B 402,864 35,198 8.7% 0 0.0% 35,198 8.7% (2,584) (2,584) $23.57
C 223,029 42,220 18.9% 0 0.0% 42,220 18.9% 0 0 $16.68
Total 731,762 177,787 24.3% 0 0.0% 177,787 24.3% 2,916 2,916 23.93$
South Main/Med Center
A 3,443,233 373,641 10.9% 0 0.0% 373,641 10.9% (22,613) (22,613) $30.70
B 3,731,688 323,735 8.7% 4,800 0.1% 328,535 8.8% (76,192) (76,192) $20.08
C 2,745,096 122,008 4.4% 0 0.0% 122,008 4.4% 31,497 31,497 $18.73
Total 9,920,017 819,384 8.3% 4,800 0.0% 824,184 8.3% (67,308) (67,308) 24.72$
Southeast/Outlier
A 159,304 0 0.0% 0 0.0% 0 0.0% 0 0 -
B 461,945 70,754 15.3% 0 0.0% 70,754 15.3% 725 725 $22.28
C 22,783 0 0.0% 0 0.0% 0 0.0% 0 0 $15.00
Total 644,032 70,754 11.0% 0 0.0% 70,754 11.0% 725 725 22.28$
Southwest
A 726,310 218,392 30.1% 20,719 2.9% 239,111 32.9% (10,768) (10,768) $18.45
B 6,890,396 1,393,164 20.2% 195,056 2.8% 1,588,220 23.0% 7,708 7,708 $15.63
C 2,475,389 271,762 11.0% 0 0.0% 271,762 11.0% 707 707 $12.22
, , , , . , . , , . , , .
Southwest Outlier
A 87,710 10,116 11.5% 0 0.0% 10,116 11.5% 0 0 $27.71
B 392,488 61,203 15.6% 0 0.0% 61,203 15.6% (1,405) (1,405) $25.41
C 150,735 8,500 5.6% 0 0.0% 8,500 5.6% (3,000) (3,000) $16.70
Total 630,933 79,819 12.7% 0 0.0% 79,819 12.7% (4,405) (4,405) 24.77$
Galleria/West Loop
A 16,338,093 1,490,361 9.1% 197,147 1.2% 1,687,508 10.3% 100,322 100,322 $30.35
B 5,461,120 1,188,631 21.8% 36,066 0.7% 1,224,697 22.4% 56,384 56,384 $22.09
C 426,332 11,631 2.7% 0 0.0% 11,631 2.7% 11,763 11,763 $16.50
Total 22,225,545 2,690,623 12.1% 233,213 1.0% 2,923,836 13.2% 168,469 168,469 26.64$
Westchase
A 7,813,357 1,514,487 19.4% 133,110 1.7% 1,647,597 21.1% 14,114 14,114 $29.08
B 5,088,940 780,561 15.3% 107,219 2.1% 887,780 17.4% (65,310) (65,310) $19.81
C 509,131 56,699 11.1% 0 0.0% 56,699 11.1% 2,086 2,086 $15.05
Total 13,411,428 2,351,747 17.5% 240,329 1.8% 2,592,076 19.3% (49,110) (49,110) 25.66$
Woodlands
A 2,296,249 544,938 23.7% 41,800 1.8% 586,738 25.6% 40,836 40,836 $29.27
B 2,975,146 340,310 11.4% 75,263 2.5% 415,573 14.0% 2,995 2,995 $20.43
C 172,322 25,077 14.6% 0 0.0% 25,077 14.6% 0 0 $19.60
Total 5,443,717 910,325 16.7% 117,063 2.2% 1,027,388 18.9% 43,831 43,831 25.70$
8/9/2019 2010 1Q Houston Office Market Report
8/9
COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
Office Development Pipeline
Houston s eve opment activity s owe signi icant y at t e start o 2010, wit no new o ice ui ings a e in t e irst quarter,
compared to 1.6M SF added in the first quarter last year. Under construction activity totaling 2.1M SF (in five new office buildings) also
fell below the 5.4M SF in the development pipeline one year ago.
Of the 2.1M SF of office space underway at the end of the first quarter, two new buildings in the CBD - Hines 972,474-SF Main Place(slated for delivery by February 2011) and Trammell Crow Companys Hess Tower (formerly Discovery Tower, scheduled for completion
by May 2010) accounted for 88% of the total development citywide. Outside the CBD, three new office projects under construction
included: Midway Companies 152,619-SF Eco Center at Lake Pointe, located in the East Fort Bend/Sugar Land submarket and
scheduled for completion by January 2011; The Quinn Companys 64,000-SF Black Forest Park, located in The Woodlands submarket
and slated for delivery by August 2010; and Jacob White Constructions 24,831-SF office building located at 12941 Gulf Freeway in the
Gulf Freeway/Pasadena submarket expected to come online in June 2010.
With supply continuing to exceed demand for office space, developers have been wise to curtail any new development projects until
stronger fundamentals resume. Although Houston remains among the least affected U.S. metros in terms of job losses during the past
several years, the local metro is not expected to see significant job growth until 2011. By extension, speculative office construction is not
Select Under Construction Office Buildings
.
Submarket Name Building Name Building Address SF % Leased Developer Name
Estimated
Delivery
CBD MainPlace 811 Main St 972,474 11.2 Hines Holdings Inc. Feb-11
CBD Hess Tower 1501 McKinne St 844 763 100 TCC Develo ment Ma -10 ,
E Fort Bend Co/Sugar Land Eco Centre at Lake Pointe 16750 Creek Bend Dr 152,619 0 Midway Companies Jan-11
Woodlands Black Forest Park 4526 Research Forest Dr 64,000 0 The Quinn Company Aug-10
Gulf Freeway/Pasadena 12941 Gulf Freeway Office Building 12941 Gulf Freeway 24,831 46.02 Jacob White Construction Jun-10
Total office properties under construction listed above 2,058,687
Grand total office properties under construction over 20,000 sq. ft. 2,058,687
8/9/2019 2010 1Q Houston Office Market Report
9/9
COLLIERS INTERNATIONAL | HOUSTON OFFICE MARKET | 1ST QUARTER 2010
294 Offices Worldwide
NORTH AMERICA
EUROPE AND
MIDDLE EAST
HAWAII
SOUTH
AMERICA
AFRICA
ASIA PACIFIC
AUSTRALIA
61 Countries on 6 Continents
133 AMERICAS
94 USA
22 CANADA
17 LATIN AMERICA
COLLIERS INTERNATIONA
1300 Post Oak Blvd, 2nd Floo
Houston, Texas 7705
Main: 713.222.21
Fax: 713.830.21
www.collierstexas.co
64 ASIA/PACIFIC
97 EUROPE/MIDDLE
EAST/AFRICA
$1.6 BILLION IN GLOBAL
REVENUE
1.1 BILLION S UARE FEET
UNDER MANAGEMENT
12,700 PROFESSIONALS